Russian exporters have begun to turn to barter deals in a bid to resolve payment delays prompted by western sanctions over Moscow’s war in Ukraine.
Foreign banks started dropping Russian counterparties after US President Joe Biden in December threatened to impose secondary sanctions on lenders assisting Russia in its war efforts. The move dented Moscow’s efforts to sell commodities abroad and import foreign goods, prompting the Russian government to promote the barter system as a way of settling international payments.
“Although barter transactions were common at the intergovernmental level, they are now becoming increasingly popular among businesses,” said Irina Zasedatel, vice-president of the association of exporters and importers in Moscow. “Direct payments are difficult in the current situation, and barter is an excellent alternative.”